The tractor industry has lauded Punjab government's decision to provide 10,000 tractors on subsidised rates to small farmers during FY 2015-16. The provincial government will give Rs 0.2 million per tractor as subsidy to small farmers having up to 12.5 acre of land;
Talking to Business Recorder senior executives of the tractor industry said this farmers friendly programme would not only give boost to the industry and its vendors but would also help the small farmers who have suffered great losses due to poor yield and damages to such cash crops as rice, potato, grams, vegetables and wheat this year. They said that after reduction of GST from 17 pc to 10 pc on tractors last year the production and sale of tractors has increased considerably during first nine months of FY 2014-15.
Last year the tractor manufacturers/assemblers, Fiat, Massey Ferguson and Orient IMT sold 24,178 tractors whereas during first nine months of the current financial year, the industry sold 35,181 tractors. They said that the government should totally withdraw GST on agriculture implements to promote mechanised farming in the country for it was already getting 10 pc GST on tractors.